Why aren't more AUMN investors up in arms on this site???????
posted on
Oct 04, 2012 11:57AM
Golden Minerals is a junior silver producer with a strong growth profile, listed on both the NYSE Amex and TSX.
Continued e-mails to IR:
It's my contention that the pricing model for these junior mining companies has changed. No longer are they priced on assets/cash on hand. They are now priced according to algorithms that big banks use to move the stock around on their whims. If any of these companies want to survive, war must be waged on these banks. What business does RBC have with continually selling AUMN stock ( a small silver miner) on the Toronto exchange? None? Why do they do it? Because they know the regulators will look the other way and there isn't an ounce of retail playing this stock. Play time!!! (Switch the order of the following 2 e-mails).
I respectfully disagree. Some of your peers have been delivering great drilling results (PZG to name one), yet the stock price goes no where. I have to believe that Mr. Clevenger knows that this is a huge issue. What business does Citigroup Canada, or RBC, or countless other Canadian banks have trading a small silver miner like Golden Minerals on the Toronto Exchange? Because they know that there is NO retail interest in your stock, and they can manipulate the stock price lower and lower like a play toy. All it would take is for your company to make a press conference stating that you're going to take a portion of cash on hand and buy back some shares, or hold back a percentage of future production. Something to attract an iota of retail investors to force the Canadian banks to make real markets in the stock, rather than just walk it down.
Tim Jenkins
Dear Mr. Jenkins,Using cash right now -- during a time of business expansion and production ramp-up -- to buy back shares or implement a reverse stock split are arguably not wise uses of that cash and would not help shareholders longer term. Management believes the best way to reward shareholders is to use the cash we have just raised to execute on the strategic plans we have laid out. This is our intention. We have no control over computerized and algorithm-based trading in our stock, and the best way for any company to get rid of shorts is to deliver results. Golden is far from the only company in our sector whose stock price has been under pressure. The last time we charted it (which was several weeks ago) we were above the average YTD return in our peer group.